Blackrock commits to keeping Naturgy listed on the stock market for the next three years | National and international economics

BlackRock intends to keep Naturgy listed on the stock market for the next three years, ensuring its continued presence on the Spanish markets. The decision comes after the US giant completed the acquisition of fund manager GIP, owner of 20.64% of the energy company. This commitment, which was communicated this Monday to the National Securities Market Commission, implies that the manager will not propose or support initiatives to withdraw Naturgy shares from the Spanish stock exchanges during this period, as the government demanded in September to give the green light light. operation.

In addition, in a statement to the regulator, BlackRock disclosed other important obligations regarding this operation. Notable among them is an agreement to retain a significant portion of Naturgy’s employees in Spain for at least five years, although details on this have been avoided. It will also retain its registered office and management of its businesses in Spain. In terms of financial policy, BlackRock says it will manage Naturgy’s debt “prudently to maintain its investment-grade credit rating.”

This approach also aims to ensure that regulated subsidiaries maintain debt levels in accordance with the recommendations of the National Markets and Competition Commission (CNMC). The manager will also maintain a registered office and effective headquarters to manage and direct the business in Spain, and will maintain a prudent dividend and external debt policy aimed at maintaining Naturgy’s investment grade credit rating.

The US manager also committed to supporting Naturgy’s investments in energy transition projects in Spain, focusing on sustainable and long-term initiatives that ensure adequate profitability and adapt to market risk standards. On the other hand, BlackRock will avoid supporting any asset sales not included in Naturgy’s strategic plan that could affect its control of subsidiaries essential to the country’s electricity and gas transmission and distribution operations.

Formalization

With this, BlackRock formalizes its new role as a relevant shareholder in Naturgy’s capital after the Council of Ministers on September 17 approved the acquisition of 20% of the company through the purchase of GIP, which entered Naturgy in 2016. The move follows a failed attempt by the Emirati taka to enter into the capital of the energy company and represents a significant change in the ownership of the gas company. So far, both GIP and venture capital giant CVC, which owns another 20% stake, have tried unsuccessfully to sell their stakes.

With this acquisition, the manager takes another step in its infrastructure investment strategy by serving as a long-term partner of Naturgy. This position reduces the pressure to sell assets quickly, marking a difference from CVC’s focus, which could focus only on Naturgy’s divestment efforts.

The Ministry of Economy stressed that the approval of this acquisition is in line with the need to maintain conditions that protect the strategic interests of Spain and Naturgy as a key company in the energy sector. This is not the first time that the government has spoken out on this issue: in 2020, when the Australian fund IFM acquired 15% of Naturgy, conditions were also created to ensure its permanence and stability in the country.